Sorry, I misspoke a little. You're right that the Preferred, Alternate, and Fallback methods are set on the pool. The wideip can then have a lb method to lb between multiple pools (which most people don't have a need for). So if you are using only 1 pool, the wideip lb method doesn't really do anything.
If the Preferred fails, the Alternate should be used. If that fails, then Fallback. So if you set both P and A to Topology, then if the topology records match a down pool, the fallback will be used. You could switch the Alternate to something else if that works better for your environment.
Denny